A Richardson Chapter 7 bankruptcy attorney can help you with the bankruptcy process, which can discharge many debts, but generally not student loans. Unfortunately, student loans can leave a person with debt totaling tens or even hundreds of thousands of dollars. Paying off this amount of debt can be close to impossible, especially if you graduate from college without a high-paying job.
However, if you can prove that paying off the student loans will cause an undue hardship, then you may be able to discharge them. Student loan repayment often starts within six to nine months after graduation.
If you are still unemployed at that time or are working at a job that pays much less than you need to make your loan payments, you may be headed for financial difficulties. Therefore, you will need to prove that student loan repayment will cause a hardship.
To claim an undue hardship, you will need to prove that:
- you cannot maintain a minimum standard of living if you are forced to repay the loans;
- your employment situation, or lack thereof, is likely to persist for a long time; and
- you have made an attempt to make payments on the loan.
If you have a hard time meeting basic expenses after being out of school for a while, then you may qualify. However, if you just bought an expensive sports car or thousands of dollars in designer clothing, then creditors can claim that you have the means to pay off the loan because of your past indulgences. Contact a Richardson Chapter 7 bankruptcy attorney to seek advice about your situation.
If you are in need of a Richardson Chapter 7 bankruptcy attorney, contact the law offices of Warren & Migliaccio, L.L.P. They can help you get on the right track after a bankruptcy. Contact them today at (888) 584-9614.